Nearly two-thirds (63%) of IT directors are concerned that
software procurement is becoming increasingly complex, a UK
survey shows.
The survey of 200 IT directors, which was commissioned by
Microsoft, reveals that 65% of IT said that complex procurement
processes delayed software implementations.
Some 80% said that a lack of flexibility in contracts slowed
down the buying process, and 72% said the unwillingness of
suppliers to be accountable had a negative effect on deals.
Gillian Austin, legal director at technology law firm
Olswang, said IT directors want contracts that are easy to
understand and do not need a lawyer to interpret.
"That boils down to a simplified approach and the ability to
speak to the software supplier if they need something specific such
as licensing for phased implementations," she said.
Microsoft is calling for suppliers to change the way they sell
software.
"We do not see many other software suppliers expressly
acknowledging the existence of the issue and want to act as a
catalyst to push this in a more positive direction," said Dervish
Tayyip, head of legal for Microsoft in the UK.
"There is clearly a need for industry-wide change," he said. "We
think the time has come for someone to take a visionary approach to
addressing the issue rather than sticking our heads in the
sand."
Microsoft said it planned to improve its procurement process by
delivering better terms, which will allow customers to negotiate
software contracts more quickly and cheaply. Microsoft also plans
to reduce the number of standard contracts it offers to customers
through its
customer and partner experience programmes.
Austin said Microsoft had made agreements easier to understand,
widened the scope of IP indemnity to protect customers from
third-party claims, and increased warranty periods to give
companies enough time to test products thoroughly to ensure that
they work properly.
David Roberts, chief executive of The Corportate IT Forum, said,
"We are delighted that Microsoft plans to try to solve an issue it
was in the main responsible for causing."
He said coroporate users of IT would take a close interest in
the software supplier's bold announcement and would be watching
carefully to see what actions are taken as a result.
"However, it is vitally important that this needs to be a
customer-led initiative rather than a supplier-driven one.
Corporate IT users must be involved as a driving force from the
beginning, otherwise the result will be as costly and complicated
as before," said Roberts.